And Oliver Jones from Capital Economics said that for now, fears of market contagion remain low.

“The key difference between now and 2015-16, though, is that investors no longer appear worried about a “hard landing” in China’s economy that could have severe consequences for the global economy,” Jones said.

So the evidence suggests that investors think China’s current bout of market weakness will be contained, “even if they are concerned that growth will be a bit slower than they had previously thought after the escalation of US protectionism,” Jones said.

Markets also appear relatively indifferent to further complications stemming from China’s ongoing deleveraging campaign, although a leaked report last week warned of a potential “financial panic” in the coming months.

Jones cited the recent contraction in Chinese PMI data as evidence that China’s economy growth will continue to ease in the months ahead.

“But we are forecasting a slowdown, rather than a slump, over the rest of this year,” Jones said.

“So even if we see some more weakness in China’s currency and equity markets in the near term, any resulting hit to the US stock market could still be limited.”

Chinese stocks initially fell by more than 1% yesterday before rallying back to even in afternoon trade.